Apple shares gain the most in a week on Tuesday, tech giant plans to produce a passenger vehicle by 2024

According to a recent report by Reuters, Apple Inc (AAPL) intends to begin production of a passenger vehicle by the year 2024 by using its own battery technology.

Apple’s new battery design could lead to a “radical” reduction of battery costs and also improve the vehicle’s range, the report stated.

Apple shares closed higher for a second consecutive trading session on NASDAQ on Tuesday. It has also been the sharpest single-session gain since December 15th. The stock went up 2.85% ($3.65) to $131.88, after touching an intraday high at $134.40, or a price level not seen since September 2nd ($137.98).

Shares of Apple Inc have risen 79.64% so far in 2020 compared with a 14.13% gain for the benchmark index, S&P 500 (SPX).

In 2019, Apple’s stock went up 86.16%, thus, it again outperformed the S&P 500, which registered a 28.88% gain.

However, it is still not certain who would assemble an Apple-branded vehicle.

“It is clear to us that Apple has ambitions in the transportation space, which could result in meaningful revenue for the company, the emergence of Tesla’s first true competitor, and further evidence that traditional auto is in a tight spot, absent any partnership with a tech giant,” Gene Munster, managing partner at Loup Ventures, wrote in a note, cited by Reuters.

Analyst stock price forecast and recommendation

According to CNN Money, the 37 analysts, offering 12-month forecasts regarding Apple Inc’s stock price, have a median target of $135.00, with a high estimate of $160.00 and a low estimate of $74.10. The median estimate represents a 2.37% upside compared to the closing price of $131.88 on December 22nd.

The same media also reported that at least 23 out of 40 surveyed investment analysts had rated Apple Inc’s stock as “Buy”, while 10 – as “Hold”. On the other hand, 2 analysts had recommended selling the stock.